The head of Indian NASSCOM called cryptocurrency illegal

The head of the Indian non-profit trade organization called the cryptocurrency "illegal" and urged enterprises to comply with local legislation.

Debjani Ghosh, president of the National Association of Software and Service Companies (NASSCOM), consisting of more than 2,000 companies, said that, from an organization's point of view, cryptocurrencies in India are illegal. According to her, the "illegal" status of cryptocurrencies was because the government could not keep up with innovations.

The official cryptocurrency in the country is not prohibited, but in July, the Reserve Bank of India (RBI) banned local banks from servicing companies involved in exchanging or processing digital assets. At that time, RBI identified risks to financial stability and the safety of investors as the main reasons for the ban.

Representatives of the local cryptocurrency community heavily criticized these actions. Despite the fact that the cryptocurrency in the country remains legal, the Supreme Court of India has not responded to many petitions.

In August, it was reported that the government would introduce rules for regulating the cryptocurrency industry by the end of 2018. Their absence makes the work of cryptocurrency companies incomprehensible from the point of view of the regulatory framework.

"The Minister of Finance said that cryptocurrencies are not legal tender in India, but he did not say "illegal" means of payment," said the head of the "Unocoin" cryptocurrency exchange, whose cryptomate confiscated a few weeks after its installation.